Deadline for voluntary National Insurance contributions extended to April 2025

[Andrew from Vista Financial]

Well, it seems that the panic is over as an extension has been granted as per below:

Taxpayers now have until 5 April 2025 to fill gaps in their National Insurance record from April 2006 that may increase their State Pension - an extension of nearly 2 years - the government announced today (12 June).

Extending the voluntary National Insurance contributions deadline until 2025 means that people have more time to properly consider whether paying voluntary contributions is right for them and ensures no-one need miss out on the possibility of boosting their State Pension entitlements.

The original deadline was extended to 31 July 2023 earlier this year, and tens of thousands of people have taken advantage to pay voluntary contributions to HM Revenue and Customs (HMRC) since then. The revised deadline is expected to enable tens of thousands more to do the same.

Victoria Atkins, Financial Secretary to the Treasury, said:

People who have worked hard all their lives deserve to receive their State Pension entitlement, and filling gaps in National Insurance records can make a real difference.

With the deadline extended, there is no immediate rush for people to complete gaps in their record and they will have more time to spread the cost.

Laura Trott, Minister for Pensions, Department for Work and Pensions, said:

I am pleased to see so many people taking steps to review their State Pension, which is why we have extended the deadline for customers to add extra years to their National Insurance record.

This extension means thousands more people will have time to check their entitlement, and in many cases increase the amount they receive when they retire.

The extension means that taxpayers have a longer period to enable them to afford to fill any gaps if they choose to do so. All relevant voluntary National Insurance contributions payments will be accepted at the rates applicable in 2022 to 2023 until 5 April 2025.

Individuals who are planning for their retirement could benefit from the opportunity to complete gaps in their National Insurance record. Other people who may benefit include those who may have been:

·         employed but with low earnings

·         unemployed and not claiming benefits

·         self-employed who did not pay contributions because of small profits

·         living or working outside of the UK

Paying voluntary contributions does not always increase your State Pension. Before starting the process, eligible individuals with gaps in their National Insurance record from April 2006 onwards should check whether they would benefit from filling those gaps.

They can find out how to check their National Insurance record, obtain a State Pension forecast, decide if making a voluntary National Insurance contribution is worthwhile for them and their pension, and how to make a payment on GOV.UK.

Taxpayers can check their National Insurance record through their Personal Tax Account.

 Full article here: https://www.gov.uk/government/news/deadline-for-voluntary-national-insurance-contributions-extended-to-april-2025

 

Regards Andy

[Ken]

Obtaining the forecast is easy but they make it make very difficult to actually pay them. You have to phone to obtain an 18 digit reference number before you can do so.

[Ruth1]

On 20/06/2023 at 09:49, Andrew from Vista Financial said:

Well, it seems that the panic is over as an extension has been granted as per below:

Taxpayers now have until 5 April 2025 to fill gaps in their National Insurance record from April 2006 that may increase their State Pension - an extension of nearly 2 years - the government announced today (12 June).

Extending the voluntary National Insurance contributions deadline until 2025 means that people have more time to properly consider whether paying voluntary contributions is right for them and ensures no-one need miss out on the possibility of boosting their State Pension entitlements.

The original deadline was extended to 31 July 2023 earlier this year, and tens of thousands of people have taken advantage to pay voluntary contributions to HM Revenue and Customs (HMRC) since then. The revised deadline is expected to enable tens of thousands more to do the same.

Victoria Atkins, Financial Secretary to the Treasury, said:

People who have worked hard all their lives deserve to receive their State Pension entitlement, and filling gaps in National Insurance records can make a real difference.

With the deadline extended, there is no immediate rush for people to complete gaps in their record and they will have more time to spread the cost.

Laura Trott, Minister for Pensions, Department for Work and Pensions, said:

I am pleased to see so many people taking steps to review their State Pension, which is why we have extended the deadline for customers to add extra years to their National Insurance record.

This extension means thousands more people will have time to check their entitlement, and in many cases increase the amount they receive when they retire.

The extension means that taxpayers have a longer period to enable them to afford to fill any gaps if they choose to do so. All relevant voluntary National Insurance contributions payments will be accepted at the rates applicable in 2022 to 2023 until 5 April 2025.

Individuals who are planning for their retirement could benefit from the opportunity to complete gaps in their National Insurance record. Other people who may benefit include those who may have been:

·         employed but with low earnings

·         unemployed and not claiming benefits

·         self-employed who did not pay contributions because of small profits

·         living or working outside of the UK

Paying voluntary contributions does not always increase your State Pension. Before starting the process, eligible individuals with gaps in their National Insurance record from April 2006 onwards should check whether they would benefit from filling those gaps.

They can find out how to check their National Insurance record, obtain a State Pension forecast, decide if making a voluntary National Insurance contribution is worthwhile for them and their pension, and how to make a payment on GOV.UK.

Taxpayers can check their National Insurance record through their Personal Tax Account.

 Full article here: https://www.gov.uk/government/news/deadline-for-voluntary-national-insurance-contributions-extended-to-april-2025

 

Regards Andy

But if we are eligible for class 2 contributions whilst living in Aus, and have enough years left to top up before retirement, its not going to be worth it right?

[Marisawright]

On 21/06/2023 at 14:50, Ken said:

Obtaining the forecast is easy but they make it make very difficult to actually pay them. You have to phone to obtain an 18 digit reference number before you can do so.

I assume that's for people who want to pay ongoing contributions?   If you just want to backpay missing years, they send you a letter with instructions how to pay and it's straightforward.  I didn't need to phone anyone.

Edited June 22, 2023 by Marisawright

[Nemesis]

1 hour ago, Marisawright said:

I assume that's for people who want to pay ongoing contributions?   If you just want to backpay missing years, they send you a letter with instructions how to pay and it's straightforward.  I didn't need to phone anyone.

Same here, I paid for missing years by cheque and by bank transfer, having had letters from them. Never needed to phone anyone. Very easy to do, though it takes a good while for the payments to show on the account. 

[Andrew from Vista Financial]

11 hours ago, Ruth1 said:

But if we are eligible for class 2 contributions whilst living in Aus, and have enough years left to top up before retirement, its not going to be worth it right?

Well as the saying goes........"a bird in the hand is worth two in the bush".

The way I looked at it when I paid a lump sum outright to catch up my record was that it's in the bag and is therefore less likely to be taken away in case of any future rule changes and also that I paid at current rates rather than future rates.

Personal preference really.

 

 

[Ken]

3 hours ago, Nemesis said:

Same here, I paid for missing years by cheque and by bank transfer, having had letters from them. Never needed to phone anyone. Very easy to do, though it takes a good while for the payments to show on the account. 

So how did you obtain the letter?

[Ken]

5 hours ago, Marisawright said:

I assume that's for people who want to pay ongoing contributions?   If you just want to backpay missing years, they send you a letter with instructions how to pay and it's straightforward.  I didn't need to phone anyone.

No, I only want to backpay missing years, and I can see on the forecast exactly which years they are and how much the cost is (including one that is partly paid). There is however no information about how to pay other than a phone number (there is a payment link but that requires an 18-digit number starting with 60 which is not provided on the forecast). How did you get them to send you a letter?

Edited June 23, 2023 by Ken

[Drumbeat]

35 minutes ago, Ken said:

No, I only want to backpay missing years, and I can see on the forecast exactly which years they are and how much the cost is (including one that is partly paid). There is however no information about how to pay other than a phone number (there is a payment link but that requires an 18-digit number starting with 60 which is not provided on the forecast). How did you get them to send you a letter?

I did this a couple of years ago, I think you need to fill a form in and they send you the details. I’ll see if I can find it on their website.

[Drumbeat]

I’m assuming you’re not in the UK in which case there is info here and a form to complete :

https://www.gov.uk/voluntary-national-insurance-contributions/deadlines

Edited June 23, 2023 by Drumbeat

[desreb]

Interestingly, i just checked my year-by-year top up statement on the gov.uk website just now, and it still says all previous years to top up going back to 2011, must be done so by 31st July

 

[Ken]

On 29/06/2023 at 21:53, desreb said:

Interestingly, i just checked my year-by-year top up statement on the gov.uk website just now, and it still says all previous years to top up going back to 2011, must be done so by 31st July

 

I'm assuming there will be an inflationary price increase on 1st August but you'll still be able to contribute, whereas in the past (and per the original post here after April 2025) you were restricted to going back 6 years.

[Ferrets]

I've just spoken with HMRC, and they've advised a 44 week wait once the CF83 is receieved 

• As I believe I am eligible for Class 2 I'll have to get my application done and suck up the leadtime.
• I was also advised (I believe incorrectly), that my wife, who was not working (but recieving child benefit) when we left, but is now working in Australia may also be eligible for Class 2.  Based on what I read I don't think this is the case, does anyone have any experience on this?

Cheers,

Ferrets

[desreb]

It's a shame the HMRC site doesn't offer an API or data export - I ended up screenshotting my years of Full/not Full contribution and writing my own spreadsheet.

One thing I discovered from this PDF from 2020, is that you might not need to pay NICs for years where you were eligible for NI Credits, one reason for credits being if you were eligible for the various child benefit / disabled child carers allowances in the UK.

Both our kids were diagnosed with disabilities around 2015 in AU, and when we ping-ponged to the UK in 2017-18, therapy for both continued there, and we belatedly applied for Disability Living Allowance for one in March 2018, before returning to AU in Dec 2018 and becoming eligible for NDIS and Carers' Allowance.

I wonder if my wife might be eligible for NI credits for the years/part years we were living in the UK and receiving DLA, and whether the subsequent NDIS/Carers' support once we moved back to AU would equate to NI credits - meaning she could forgo the Class 3 NIC's for those years.

[proud preston]

I’m unsure if this post is still active? I logged on to the HMRC app but am unable to prove my ID as my UK drivers licence is out of date (expired in 2016) Any advice how I can get past the ‘prove my ID’ stage without having a current UK drivers licence? I’ve only recently obtained a new UK passport …purely for the purpose of trying to pay into my NI to get the UK pension later on.  Thanks